When compared to previous months, the crypto industry experienced a decrease in job losses in February. Only 570 layoffs were reported in the industry for February, which was relatively low. This information may point to a stabilizing trend in Digital Economy to the Crypto job market, which could be beneficial to the overall growth and health of the sector. In stark contrast, over 2,900 crypto industry employees were laid off in January. Over the past month, layoffs in the cryptocurrency industry appear to have slowed significantly, with an estimated 570 layoffs in February, down from an estimated 2,850 in January.
All About the Situation
Cointelegraph used publicly reported layoffs to compile the numbers, which showed that job cuts occurred at least 12 times over the 28 days but lacked the triple-digit layoffs from Coinbase, Crypto.com, and Huobi in January. All things considered, staff cuts came in the twofold digits generally — affecting blockchain examination firms, blockchain, and programming advancement firms, and computerized resource stages, among others. Elliptic and Messari, two crypto analytics companies, cut 10% and 15% of their workforces, respectively, in the most recent round of layoffs.
On February 23, Messari founder Ryan Selkis stated via Twitter that the staff reductions were the result of a restructuring of their internal teams and “market headwinds.” Having affected around 27 employees is assessed. Meanwhile, on February 24, a spokesperson for Elliptic told DLNews that the move to lay off 20 employees was a move to reduce operating costs. It comes after Chainalysis, another blockchain analytics company, announced earlier this month that it had laid off 44 of its 900 employees, or 4.8% of its workforce, mostly in the sales that took place recently.
Everything Happening
According to data from the layoff tracker Layoffs. FYI, 24,572 employees were fired from 129 tech companies in February, down from 84,414 employees from 268 tech companies in January. According to Dundon, “Web3 will always be hit to a harder degree, at least until Bitcoin decouples from the stock market.” There may also be concerns that Web3’s stricter regulations will contribute to the spike. However, crypto remains resilient as always.
Dapper Labs, a nonfungible token company, and Polygon Labs, an Ethereum-scaling platform, both laid off around 20% of their employees as a result of internal restructuring. Sandeep Nailwal, a co-founder of Polygon, explained the move in a tweet on February 21. He said that the company had cut 100 jobs as a result of unifying all of its internal teams under Polygon Labs. Roham Gharegozlou, CEO of Dapper Labs, confirmed another round of layoffs on February 23, noting that it was part of a restructuring “to improve our focus and efficiency.”
Important News
Another Ethereum layer-2 blockchain protocol’s Australian developer, Immutable, reportedly laid off 11 percent of its workforce during the month. Cryptocurrency exchange Bittrex, NFT marketplace Magic Eden, institutional crypto custodian Fireblocks, software company Protocol Labs, and crypto media company The Block were among the other businesses that made headcount reduction announcements.
During the month, payments company Affirm announced that it was ending its crypto program as part of a 19% staff reduction. However, it is unknown how many employees from its crypto unit were let go as a result. Proof of Search founder Kevin Gibson agreed that the rate of layoffs appears to have slowed down in comparison to January. He stated, “Jan was big because it followed boards and venture capital looking at results for 2022 and preparing for the worst.” This month, there have been fewer candidates laid off.
Conclusion
Gibson, on the other hand, cautions that the securities regulator in the United States could still “bring about more pain” and that the “public perception of the sector and mainstream adoption has been impacted by the constant coverage of press. It was of Sam Bankman-Fried. Also, there was the collapse of the FTX. Even though the prospects may appear promising, leading industry expert Gibson warns that the securities regulator in the United States may still cause additional harm. Also, the Sam Bankman-Fried and FTX collapses are getting more and more attention in the media, which may make it harder for the general public to adopt the industry. For investment or crypto trading, visit Bitcoin Smart.
